MUSKAN EXIM INC Vs. COMMISSIONER OF CUSTOMS (EXPORT)

JUDGEMENT

(1.) The petitioner assails an order dated 27.09.2018 passed by the Additional Commissioner of Customs principally on the ground that the matter was then pending consideration before the Customs, Central Excise and Service Tax Settlement Commission [hereinafter referred to as "the Commission"].

(2.) The relevant facts, in brief, are that the petitioner was served with a Show Cause Notice dated 14.12.2017 pursuant to an investigation by the Directorate of Revenue Intelligence ("DRI"). The DRI had come to the conclusion that the petitioner had inflated the value of readymade garments being exported in order to claim inflated amounts by way of drawback. By a letter dated 07.06.2018, counsel for the petitioner informed the customs authorities that the petitioner was in the process of filing an application before the Commission and it was requested that the adjudication be kept in abeyance. The petitioner's Settlement Application under Sec. 127B of the Customs Act, 1962 [hereinafter referred to as "the Act"] was in fact filed on 21.08.2018. The Commission, by a communication dated 29.08.2018, acknowledged the receipt of the application and stated that it had decided to hold the admission hearing in the case on a date to be specified. However, even before the Commission held any hearing in terms of its communication as aforesaid, the customs authorities adjudicated the Show Cause Notice and passed the impugned adjudication order dated 27.09.2018. The said order inter alia directed confiscation of goods [redeemable on payment of redemption fine of ?20 lakhs], restricted the drawback amount claimed and imposed penalty of ?20 lakhs each on the petitioner under Sections 114 (iii) and 114AA of the Act.

(3.) The petitioner contends that the impugned adjudication order is liable to be set aside on the ground that it was issued during the pendency of its application before the Settlement Commission.